Credit unions differ from banks in their eligibility requirements. Laws created by the Federal Credit Union Act of 1934

require credit unions to have defined memberships. Members must qualify to join and start receiving credit union benefits.

New membership changes:In 2015, The NCUA made changes to implement automatic approval and regulatory relief to federal credit unions seeking to add associations to their field of membership in an electronic confirmation. In doing so, they created 12 categories for membership eligibility. The majority of associations are now eligible for federal credit union memberships under one of those 12 categories that automatically qualify as valid associations. The NCUA has updated the Field of Membership Internet Application (FOMIA) system to accommodate these 12 categories.

For associations that do not qualify for those categories of pre-approved association groups, The NCUA is streamlining the approval process. The rule clarifies the four most important

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“The Credit Union Advantage”Advantage

In this IssueCredit Union Membership More Accessible ...................................1

It's Budget Time!!!......................2

Credit Unions vs. Banks – What’s The Difference? ..........3

New Military Lending Act Regulations .................................4

5 Reasons Credit Union Lending Will Beat a Bank Every Time ..............................................5

Forms Warranty From Oak Tree → Give Yourself an Early Holiday Gift .................................6

Credit Union Day .......................6

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Credit Union Membership Eligibility More AccessibleOak Tree Team Members' Contribution

criteria that The NCUA considers, in order to approve a valid association. See the full list of 12 categories of associations and criteria here.

The ResultsAccording to The NCUA, membership growth among federally insured credit unions has continued its strong growth pattern.

The NCUA announced that not only is membership continuing to expand, but auto and real estate lending are leading to loan growth. Overall lending has increased 10.6% from Q2 2014, however, new auto loans are up 19.5% from Q2 last year, and first mortgage loans are up 9.6% from Q2 last year.

The Key to Growth with More Members Compliant Forms:With Oak Tree's forms, you'll benefit from nothing but the highest quality, customized, state and federally compliant forms developed for your credit union, with specific policies and procedures smoothly integrated into your data processing system.

If your federal credit union serves associations in your field of membership, or is contemplating doing so, you will benefit from new NCUA guidance and the advantage of Oak Tree forms.

Spread The Word:• What do your potential members need to join a credit union?To open a share savings account, you will need to make a deposit of approximately $5 to $25, and then maintain this minimum balance.

• How do they pick your credit union?Credit unions follow requirements called a “Field Of Membership” (FOM). Anyone is eligible to join your credit union based on a geographic location, school or family affiliation, association, church, or those with a certain employer. While some credit unions are interested in broadening their FOM requirements, others remain rather exclusive.

Generally, members do not have to maintain the FOM affiliation to remain a member, however, your credit union continues to offer lending options to all members.

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It's Budget Time Again!!! Invest Now and Keep Your Credit Union Budget on TrackJeff Osburn, Director of Client Services

Everyone is working within a budget, and your credit union is no different. Now's the time

to plan! So, why not invest in forms for your credit union? Make them Oak Tree forms. Every form is compliant—ensured, thanks to an entire legal staff singularly dedicated to staying on top of state and federal compliance laws and their ongoing changes.

As you measure your budget goals in every area of your organization from staffing, board involvement, documents, training, soft-ware, member services, marketing, reputation, and new services—all the way to financial re-sults—keep in mind that your credit union forms are the vehicle for credit union growth. Oak Tree forms are the lending solution for securing more members.

Oak Tree Business Systems, Inc. offers credit unions a range of forms—from membership

documents to consumer lending forms, and so much more. Other services Oak Tree offers include home equity packages, Data Linking, compliance support, and training.

Save time and money with Data Linking, as Oak Tree continues to provide cost-effective, time-saving solutions to credit unions. Oak Tree works with your data processor to ensure that the information from your data processing system is integrated seamlessly into your credit union forms.

Stay on the cutting edge of technology adaptation, prioritizing lending, and budgeting for those investments in service technology. Enable your credit union to grow, prosper, and effectively

compete against billion dollar institutions and financial providers by choosing the right credit union forms provider. Oak Tree Business Systems, Inc. has been successfully developing and supporting forms for credit unions for 30+ years, and is backed by an amazing compliance warranty.

Chat with us www.OakTreeBiz.com or email us.

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Credit Unions vs.Banks – What’s The Difference?Jeff Osburn, Director of Client Services

Credit unions and banks offer similar services: they accept deposits into checking (Share

Draft Accounts for credit unions) and savings (Share Accounts for credit unions) accounts, and make loans. However, the structure of these two financial institutions is very different. There are three main areas that banks and credit unions vary greatly: Ownership, profit, and service.

Who’s in Charge Around Here?You’re in charge! Well, at least if you’re part of a credit union, that is. Credit unions run on a democratic voting system—one member has one vote. For credit unions, it doesn’t matter how much money you have in your checking and savings account. As long as you belong to the credit union, you have an equal say in how things operate. In addition, individuals on the board of directors are all volunteers, are elected by the members, and are not paid. Any member of the credit union can run to become a board member. On the other hand, banks are run mostly by a paid board of directors. Board members are elected by shareholders. The more shares an individual has, the greater their voting power is, and the more "say" they have in how the bank operates.

For Profit or Not for Profit?This one is simple. Credit unions are not-for-profit, while banks are for profit. Banks exist to earn profits for their shareholders. Because credit unions are not-for-profit, their earnings are passed on to their members by offering low interest rates on loans, and higher-paid interest rates on saving accounts. In some instances, credit unions will offer free checking accounts. This profit orientation affects the type of loans and services that each financial institution offers.

Service Comes FirstCredit unions mainly serve at the community level, which allows them to be more "in-tune"

with their members' needs. In addition, they serve those belonging to similar organizations, such as teachers, firefighters, airlines, universities, etc.

By having members with common interests, credit unions have a better understanding of the wants and needs of their members, and therefore can better serve their interests. In addition, their size allows members to get to know the employees who work there, and members build important relationships that are beneficial when it comes time to apply for a loan. Credit unions are also

part of a cooperative, which allows them to share resources with other credit unions, such as shared ATM network branching (allowing members to withdraw from other credit unions' ATMs), and much, much more.

After comparing these two financial institutions, it is clear to see that the credit union mission is to better serve members, and to improve members' financial lives. Credit union members have reached a new high of over 101 million members in the United States as of 2015. By giving members the financial services that they really need, this number is certain to continue to rise as the beneficial reputation of credit unions continues to spread.

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The rapid growth of new members goes to show that the credit union movement is strong and that members are appreciative of the services offered by credit unions.

For compliant forms email me at Jeff@oaktreebiz.com

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Recent Changes Regarding Military Lending

At Oak Tree Business Systems, Inc., we pride ourselves in maintaining forms that are up to

date and compliant across all federal and state guidelines. Well, it is time for us to "up the ante" with this latest regulatory change. Protections have been expanded for active-duty service members and their families according to the revised regulations of the Military Lending Act. Now, loan products offered by credit unions and other depository institutions are covered by these regulations. The new requirements will take effect October 1 of this year. The mandatory compliance date is October 3, 2016 (and not until October 3 of the following year, and possibly later for credit card accounts).

Why Did The Regulations Change?The reason for the regulatory change has to do with why the MLA was enacted to begin with. In 2006, Congress discovered that most active-duty members often looked to subprime lending sources to help them get relief during a financial crisis. Even though the loan provided short-term relief, the high interest costs associated with carrying the new loan would throw these families into a cycle of unsustainable debt. This added to the stress that service members already feel in general, and this added stress would trickle down to their spouses and children. Therefore, the MLA was established in 2007 to protect service members from predatory lending. The act was specific in that it only applies to active- duty members, and focuses on the following:

New Military Lending Act RegulationsGenelle Rich, President

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The MLA protects the consumer by limiting the interest amount that an institution may charge for these services. This limitation comes in the form of what is known as a Military Annual Percentage Rate, or MAPR. Creditors may not charge more than 36% MAPR. This differs from APR significantly, because finance charges normally excluded under Regulation Z are included under MAPR.

The New ChangesThe new regulation changes extend to all consumer loans, not just short-term payday or tax refund anticipation loans. Under the new rules, the only types of transactions not subject to MLA regulations are:

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So, What Does This Mean?Essentially, it means that all of your forms must be updated to reflect the new changes, and kept up to date as each phase-in level date is established. You must be familiar with the new regulations to make sure that they are reflected in all of your applicable lending forms. Oak Tree Business Systems, Inc. will do just that. We will make sure that all of your lending forms are correct, include appropriate verbiage and accurate, up-to-date MAPR so they are in compliance. Oak Tree is a leader in the industry with a proven track record of producing a compliant product every time. Give us a call if you have any questions regarding your forms, or if you are wondering how the new MLA regulations will affect your institution.

Email us at clientservices@oaktreebiz.com for further details.

Payday loans of under $2000 with terms of 91 days or fewerNon-purchase money loans with terms of 181 days or fewer secured by a motor vehicle titleTax refund anticipation loans

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Dwelling secured loans, including loans to finance the purchase or initial construction of the dwelling, refinance transactions, home equity loans, home equity lines of credit, and first mortgagesLoans to finance the purchase of a motor vehicle when the loan is secured by the vehicleLoans to finance the purchase of other types of personal property when the loan is secured by the property

Now you can put a bug in your member's ear so to speak, the next time the subject of lending comes up. Use these 5 tips to promote yourself. Of course, Oak Tree will stand ready as your forms provider. The friendly, consistent, and trustworthy nature of your credit union, coupled with our compliant forms, will ensure that your members have a great borrowing experience. Members will be glad they made the switch!

The next time one of your members thinks about getting a loan to make home repairs, finance a new home, or purchase a vehicle, use the five tips below to help the member choose you

as a lending option. People often operate under the assumption that a bank is the only place that can serve their lending needs. It might be time for you to shine a little light on the subject for the potential borrower. Listed below are 5 great reasons to choose a credit union over a bank for lending services. Read the tips below, and put them to work for you.

5 Reasons Credit Union Lending Will Beat a Bank Every TimeLoyal Credit Union Members

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Higher Approval Rates Better Rates

Educational Resources

If your member's credit is stained, dirty, or needs a bit of repair, your credit union is much more likely to be accommodating than a bank. Though the loan terms and processes are very similar, credit unions are known for listening to their members' needs. Credit unions are most likely to understand that unique situations occur, and will work toward loan approvals. They will even adjust loan terms accordingly in some instances. Book any type of loan when you use Oak Tree forms.

Your credit union may have a resource center, which serves to educate your members on different finance options, financial products, and bank accounts they may have. Utilizing this resource can aid members in making a decision that best suits their needs when it comes time to secure a loan or otherwise. In addition, your credit union will probably go the extra mile, being a member-driven financial service institution. For instance, the credit union may determine the value of a vehicle so the member feels good about the loan before applying. Since the credit union is nonprofit, their answers are unbiased, so members know the credit union is not trying to inflate or deflate the value of the vehicle to stick them with a higher-rate loan. Oak Tree also offers training so your credit union staff is ready to use our forms and help members obtain the best loan.

Since they are nonprofit, credit unions essentially work for you. There is no incentive for them to sell you any new product or service. All profits generated by the credit unions go back to members, showing up in lower interest rates or new financial products, like different savings account loan options. This makes it easy to find a credit union that meets your needs. This, in addition to a faster loan processor, will lead to word of mouth from happy members.

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To explore this, let’s look at vehicle loans. Typically, most of us will secure a five-year loan for a vehicle. The rate at the credit union will be much lower than the interest rate at a traditional bank. It may only look like a 1% difference, but that 1% can add up to thousands of dollars put back into your member's pocket during the life of the loan. Oak Tree forms stay on top of state and federal compliance laws and their ongoing changes, which supports low-interest rate loans.

Since credit unions are classified as nonprofit, they don’t answer to a shareholder board. Operation decisions are usually made by a volunteer board, rather than corporate office appointees. To that end, members feel much more comfortable talking to their credit union about payment options and services. It is much easier to talk to someone when you feel like they genuinely have your best interest at heart. In addition, Oak Tree seamlessly integrates your credit union forms into your data processing system with Data Linking, allowing for faster loan processing, and saving your members time.

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Forms Warranty From Oak Tree → Give Yourself an Early Holiday GiftRichard Gallagher, CEO

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You've asked for it, you've begged for it & many times demanded it (often brought on

by "Due Diligence" demands) and Oak Tree has relentlessly given its position on the matter. But now, there's truly a product we've found that provides you with what you've been seeking WITHOUT pulling the wool over your eyes—a Forms WARRANTY!

Yes, a true & honest warranty providing for errors and/or omissions that might originate from Oak Tree during the development of your credit union's forms.

Why just now? Well, most warranties (even though called "warranties") do more to protect & limit the liability of the PROVIDER rather than the consumer → You. Don't believe me? Check the "Exclusions" portion of any existing policy you may already have.

Attorneys and loss underwriters figured this out a long, long time ago.

By providing what appeared to be a "compliance warranty" all-the-while including some fairly significant "Exclusions," when claims trickled in, it was absolutely a "no brainer" to fall back on these "Exclusions" and deny coverage based on verbiage found within the fine print of the policy, making the warranty provider's risk almost "zero"!

Well, after much, much resistance in "the game," Oak Tree finally found & negotiated a "real" compliance warranty that truly does what it's supposed to do → protect your credit union against potential loss due to inadvertent

errors and/or omissions that might somehow slip through the cracks in our already time-tested & true internal policies & procedures put into place over the past 30+ years, protecting all of us involved in the process of developing, distributing, and supporting your forms.

What's the difference? Well, not much for Oak Tree, as we'll continue as we have and remain vigilant in the areas of providing and supporting you with the best forms offered in the credit union industry, simply because it's the right thing to do.

Adherence to these internal policies & procedures have kept us (and you) 100% out of litigation for 30+ years!

On your side, however, (and understandably so) you've always wished for something more tangible than the confidence of knowing that we continually use "our best efforts" in the development & distribution process and then, the ever important [emphasis added] supporting of our products & services we provide on your behalf.

So, after many years of seeking out the most protective product, Oak Tree Business Systems, Inc. now has THE "Forms Warranty" that's just right for you. A Warranty that includes more "inclusions" than "exclusions," thus truly giving your credit union the protection it needs → and the peace of mind you've been searching for.

So, in addition to the already outstanding forms we provide, coupled with the service & support you've grown to expect from us, you now have one additional reason to put Oak Tree forms at the very top of your credit union forms provider list (with no one above) for all types of forms for your credit union.

One more reason you can sleep peacefully, knowing that Oak Tree's "got your back" when it comes to your forms needs → and happily so.

AskRich@OakTreeBiz.com Credit Union DayInternational Credit Union Day is on October 15, 2015. Here are a few ways to celebrate this year:

Use our hashtag #OTBS_CUforms and #ICUDay to post pictures/videos, or encourage members to share selfies while using it.Celebrate at your credit union by recognizing your staff, have an open house, celebrate your members with a BBQ, or have a raffle.Promote superior credit union products on this special day to spread the word to your members!Invest in your credit union with forms from Oak Tree!

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